The Neptune Global Equity Fund is a pure expression of the Neptune approach, taking a truly global view of stock selection. It is a focused portfolio investing in our favoured stock ideas from around the world. Our rigorous process aims to identify those global industry sectors with the best opportunities for growth. The Fund Manager, Robin Geffen, then selects in his view the best companies in those sectors, regardless of where they are based.

Fund Manager

Robin founded Neptune Investment Management in May 2002 and is the architect of Neptune's real world investment approach. He graduated from Oxford University in 1979 and began his investment career at Charterhouse J Rothschild before moving onto Eagle Star, York Trust plc and then Scottish Equitable, where he set up their pooled fund business. Robin joined Orbitex Investments Limited as Chief Investment Officer in 1997 and was most recently Global CIO – Pensions before founding Neptune.

The value of an investment and any income from it can fall as well as rise and you may not get back the original amount invested. All applications are made on the basis of the Key Investor Information Document, Supplementary Information Document, Prospectus, most recent annual or semi-annual report and the Application Form, which can be downloaded above. Please read these carefully prior to investing. If you are unsure about the suitability of an investment please consult an authorised financial adviser.

This Fund may be higher risk than other funds and past performance is not a guide to future performance. The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the original amount invested. Investments in emerging markets may be higher risk and more volatile than investments in developed markets.

Manager

Robin Geffen

Launch date

31/12/2001

Fund size

£206.0m

IA sector

Global

Benchmark

MSCI World

Global Investor/ISF Awards 2012

Global Equities Manager of the Year

Past performance is not a guide to future performance.

The Neptune Global Equity Fund returned 7.12% in the fourth quarter of 2017, comfortably outpacing the MSCI World Index return of 4.75% and IA Global sector average gain of 4.84%. The Fund has returned 20.52% over the last year, in comparison to the benchmark’s 12.42% gain and sector average return of 14.13%, placing it in the top quartile of the peer group over both time periods.

Market overview

The fourth quarter was strong for global equities as a whole. Continuing the trend established in 2016, emerging markets significantly outperformed their developed market peers, with the Indian market resuming its upward trend and the Chinese market continuing to edge higher. Strong earnings in Japan and the promise of tax reforms in the US also enabled these markets to register strong returns, which contributed strongly to the Fund’s outperformance over the period, whilst underweights to Europe and the UK were also rewarded.

Latin America bucked the trend, with currency weakness the major reason for the market’s fall over the quarter. Though this was a slight drag on performance, we retain conviction in the outlook for the region, with recent Chilean elections showing a continued shift in the political environment towards pro-market and reformist governments.

At a sector level, our tech overweight continued to be beneficial, whilst materials ended a strong year on a high. There were no major changes to the Neptune Global Equity Fund’s positioning over the quarter.

The Fund’s significant emerging market exposure has contributed strongly to the Fund’s outperformance over the year. The Chinese market has been the standout performer, where our tech holdings have been particularly beneficial. This was mirrored in the West, with our US technology exposure also driving returns.

The key change from a portfolio perspective was increasing exposure to the commodity-related sectors energy and materials. Metal prices have been supported by the synchronised global recovery, in combination with Chinese supply-side measures, enabling strong performance from the entire sector and significant outperformance from our favoured stocks, Antofagasta and Glencore.

Outlook

The global macroeconomic backdrop remains supportive of our emerging markets overweight. The region is experiencing underlying economic growth and earnings growth far in excess of the major developed markets, whilst we continue to see positive momentum in earnings revisions. Emerging markets in general are still on a significant discount to their developed market peers and we prefer those economies undergoing political and economic reform, in particular the more cyclical economies of Russia and Latin America as well as the ongoing structural growth story in India.

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. The performance of other share classes may differ. IA sector averages and rankings may change at any time as a result of closure, movement between sectors or price amendments by competitor funds. Where references to specific securities are made, they are for illustrative purposes only and should not be regarded as recommendations to buy or sell these securities.

This Fund may be higher risk than other funds and past performance is not a guide for future performance. The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the original amount invested. Retail clients, if necessary, should consult an investment adviser or authorised intermediary.

Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this update is deemed to be impartial research. Any forecasts on the page are indicative and are not guaranteed. We do not undertake to advise you as to any change of our views. This is not a solicitation or an offer to buy or sell. All information and advice is given in good faith but without any warranty.

Top 10 holdings (%) as at 31/01/2018

Tencent

4.1

Amazon

4.0

Mandarin Oriental

3.9

Alphabet

3.8

Neptune Emerging Makets Fund

3.6

CME Group

3.4

Microsoft

3.2

JPMorgan Chase

3.0

HSBC

2.9

Visa

2.8

Source: Neptune

Sector allocation (%) as at 31/01/2018

Information Technology

35.2

Financials

23.5

Consumer Discretionary

12.2

Industrials

8.5

Materials

5.5

Health Care

4.7

Consumer Staples

3.6

Energy

2.5

Real Estate

1.4

Cash

1.2

Alternatives

0.8

Telecommunication

0.6

Utilities

0.3

Source: Neptune

Region allocation (%) as at 31/01/2018

North America

52.7

Emerging Markets

19.9

Japan

14.1

UK

6.5

Asia Pacific ex Japan

3.9

Europe ex UK

1.7

Cash

1.2

Source: Neptune

The market commentaries found on this page relate to regions which this Fund may invest in. For quarterly commentary that relates directly to this Fund please click here.

How to invest

Neptune funds can be invested in directly by filling out an application form, which can be downloaded below. Our funds are also available across a number of fund supermarkets and life company platforms.

All applications are made on the basis of the Prospectus, Key Investor Information Document, most recent annual or semi-annual report and the application form. Please read these carefully prior to investing. If you are unsure about the suitability of an investment please consult an authorised financial adviser.

Contact your IFA

The following websites can be used to help you find an independent financial adviser:

To request hard copies of our literature please call 0800 587 5051.Phone lines are open on weekdays from 9am to 5pm UK time.

Please note that for security purposes and for your protection phone calls to Neptune may be recorded and monitored. Neptune will never contact investors by phone or email requesting personal details or account information. If you receive such a request, please notify us and do not respond to it.

These webpages are intended as a summary only and therefore potential investors should read the Key Investor Information Document, Supplementary Information Document and application form before investment. The Key Investor Information Document and Prospectus will cover any investment restrictions and specific risks applicable to this fund.